Netflix is an American Production and content streaming (Over -the-Top Content) company, with its headquarters located in Los Gatos, California.

The History of Netflix

Netflix, inc from founded in 1997 by Reed Hastings and Marc Randolf in Scotts Valley, California.

The initial business model was based on just the premise of selling portable items over the internet, this filtered down to the business model focusing on only DVD Sales and DVD Rentals, after the introduction of DVDs in 1997. From that date, they became the first online DVD rental store with a similar model to Blockbuster.

In 1999 Netflix launched the subscription-based pricing model, and in 2000 dropped the per title rental fee model completely. In that same year, after totalling losses of $57 million, Netflix was offered a buy-out from Blockbuster, but the offer was declined.

Over the next few years as the price of DVD players declined, and they appeared in more and more households across the USA, Netflix's business started to soar. By the end of 2006, Netflix had recorded 5.6 million subscribers.

In 2005 Netflix started to develop the Idea of downloading movies to stream onto a set-top box but later scrapped the idea as the technology in bandwidth started to catch up. By 2007 Netflix had completed the creation of streaming of film titles over the web facility.

By 2011 Netflix had solidified the product of streaming Films over the internet and announced that the service of rentals and streaming would be separated into two separate subscription charges but after a backlash of negative feedback reversed the decision and kept it under one subscription fee.

Over the years the DVD rental side of Netflix has seen a great decline but the increase of streaming viewers has far outweighed the original core concept of the business.